Need advice, forclose without BK?

[JC8000]

Hi
I just lost my job and I cant stay in this house anymore. I bought it in 2003 and thought I could use it as a fixer upper and sell in a few years.
The roof leaks, I just found the laundry room has mold wall to wall under the vinyl tiles, the siding is rotten, etc. and like I said, Ive no job anymore. I cant afford to fix it all anymore and Im probably upside down by $40k (I owe $90k - 4 houses on my street are either for sale, or sold for less than $20k)

Ive worked my ass off over the past ten years getting my bills down to $12k student loan(wifes), 12k 2nd mortgage, and 1500 on a credit card. Im trying to sell two cars so I can keep up some kind of health insurance.

Michigan unemployment is almost 11% and theres about 100,000 people here with the same skill set I have looking for work.

Im not sure what to do. Looking for a little advice.

Thanks

[brokenbuthealed]

If you let it foreclose, they may still come after you for a deficiency balance depending on your state laws. If they are allowed to come after you for that filing bankruptcy will allow you to wipe that debt away. If they aren't allowed to come after you for that, I don't think there's a big need for you to file bk as your student loans wouldn't be discharged anyway and the 2nd mtg would be part of the foreclosure.